World tea talks open amid boycott<\/p>\n
COLOMBO (AFP): The first ever tea producer's meeting opened
\nhere yesterday with calls for unity to boost prices despite
\nKenya, a key exporter, boycotting the talks.<\/p>\n
Sri Lanka is hosting the two-day meeting of India, China,
\nBangladesh, Indonesia, Malawi to finalize a constitution and
\nagree on joint marketing and research sharing, Sri Lanka Tea
\nBoard chairman Clifford Ratwatte said.<\/p>\n
He said it was disappointing that Kenya kept away despite
\nconfirming its participation. However, Iran, which is a major
\nimporter of tea, was attending the meeting.<\/p>\n
Sri Lanka's deputy minister of plantations, Athauda
\nSeneviratne, expressed the hope that other tea producers would
\njoin the association and \"work jointly for the betterment of the
\nindustry of our countries.\"<\/p>\n
\"Let us consider this an opportunity to renew goodwill and
\ncommitment towards the unity of all tea producing countries,\"
\nSeneviratne said.<\/p>\n
\"(This) will be the message the world receives from the tea
\nproducing countries at a time like this when a concrete step has
\nbeen taken for the creation of the Association of Tea Producing
\ncountries,\" he said, adding ministerial meeting would be held
\nlater this year to ratify the grouping.<\/p>\n
He said producers received only a fraction of the high prices
\nconsumers paid in the West for their daily cup of tea. The local
\nauction prices have been steadily declining, seriously affecting
\ngrowers, he said.<\/p>\n
The price of a kilogram (2.2 pounds) of tea, around US$2.25 in
\nthe early 1970s, dropped to $1.25 last year despite the retail
\nprices climbing to five-to-$10, Seneviratne told the meeting.<\/p>\n
\"I wish to emphasis the need to move ahead rapidly in
\nachieving not only the consensus but also the clear commitment to
\nthe (tea) association among the producing countries before it is
\ntoo late,\" he said.<\/p>\n
Tea traders in Sri Lanka, the world's largest exporter of the
\nleaf, said they hoped the association would eventually lead to
\nthe formation of a cartel to regulate prices by imposing export
\nquotas.<\/p>\n
The coming together of India and Sri Lanka, both major
\nproducers and consumers, could have a strong impact on prices and
\naugur well for the industry, said Lallith Ramanayake, director at
\nJohn Keells Ltd., a leading broking house.<\/p>\n
He said Kenya may feel compelled to join if the association
\nproduces results by way of joint marketing strategies and sharing
\nresearch results in the short term.<\/p>\n
Brokers said Kenya, the key African producer, was unwilling to
\nenter any forum which had the potential to eventually impose
\nexport quotas to regulate world tea prices.<\/p>\n
Kenya, which has a highly productive tea industry, has been
\nunaffected by falling international tea prices thanks to low
\nproduction costs, unlike other producer countries.<\/p>\n
Sri Lanka's tea industry, the country's main foreign exchange
\nearner, has been in serious trouble with prices falling way below
\nthe cost of production.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/world-tea-talks-open-amid-boycott-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}